The firm has five multi-manager funds – cautious, balanced and active funds and two smaller high-alpha funds.
The reshuffle will merge the two high-alpha funds into the new absolute return fund, leaving the three flagship funds and the absolute return fund, designed to be positioned between clients holding cash and a cautious strategy.
The global high-alpha fund has gained shareholders’ approval in favour of the new fund and has been rebranded as the absolute return fund.
At the end of November, the UK high-alpha fund will be closed and the proceeds put into the new fund, subject to shareholders’ approval. The UK high- alpha fund will continue to be run as an aggressive UK portfolio until shareholders vote on the move.
Multi-manager head Tony Lanning says the structure is designed to make the funds clearly identifiable solutions. He says: “If an IFA identifies a client who is low-risk, then that client can use our cautious product or if they are really low risk and they just need persuading to take the money out of the bank then our new absolute return product will fit that gap.”
Lanning says all mandates will have a uniform investment process and level of due diligence but the asset allocation of each underlying fund will be exaggerated in some of the more active mandates.
He says: “Taking overseas equities, all our portfolios are underweight Europe and overweight Japan but in our active fund we have some much more unconstrained, focused and more aggressively managed funds than our cautious product where we do not like Europe and we are not holding it at all.”